Preparing yourself and your family about your funeral plans may sound like a task left for the later years of your life, but that is not true. When you plan ahead of time, you prepare your family for the expenses associated with your funeral and burial.
So, just how much is burial insurance? If you want to learn more about the costs associated with burial insurance, then we definitely made this article for you. We will go over the burial insurance costs from major life insurance companies such as Mutual of Omaha Burial Insurance and who you can reach out to for more information.
Table of Contents
What Is Burial Insurance?
Burial insurance coverage, also known as a funeral or final expense insurance, is a small life insurance policy designed to take care of your after-life funeral expenses. Most companies provide coverage between $2,000 and $40,000. There are no restrictions on how this money gets spent.
The money is typically used to cover funeral expenses, medical bills, or other debts. The listed beneficiary has the authority to use the money on other expenses not related to your funeral. If the beneficiary uses the money to pay for your funeral expenses, anything left over will be theirs.
Burial Insurance Cost
The amount you pay for burial insurance coverage depends on the amount you wish to take out and other important factors such as your health status and age. As a rule of thumb, the older you are, the more you will need to pay for this coverage.
If you are currently over the age of 40, it may be best to reach out to a reputable burial insurance provider for a quote. Once you purchase your policy, you lock your rate until you pass away. On average, the cost of insurance is around $45 a month for a more minor $10,000 policy.
Benefits of Burial Insurance
Besides being able to pay for your funeral costs or medical debts, there are other great benefits to having burial insurance. For example, the policy’s death benefit is guaranteed as long as you or your loved ones continue to pay the premiums.
You also have the option to choose between paying annually or monthly. If you decide to pay monthly, your payments should only range between $40 to $50, depending on the type of coverage you choose. Your rates may be higher or lower depending on the insurance companies terms and conditions.
Burial insurance is a type of whole life insurance which means that you have the opportunity to earn dividends. If your policy does have that option available, your dividends can accumulate and earn interest. You can use these dividends to reduce your premium or have it paid to you in cash; the choice is yours.
No Medical Exam
Most burial insurance companies allow you to skip out on a medical exam. Even if you have a pre-existing condition, you may still be able to qualify for this coverage.
It Makes It Easier for Loved Ones
Whenever a family member passes away, their loved ones are first to tackle and take care of the funeral and burial arrangements. Some members even use this moment as their last opportunity to express their love for the deceased.
Because these family members want to express their love for the last time, they may find themselves in over their heads trying to pay for the funeral. This can cause your loved ones to become stressed and anxious about an already stressful and sad situation. When you purchase burial insurance, you help your loved ones be more at ease because they will have the financial means to take care of your after-life care.
Preparing What You Want
Planning a funeral is not necessarily as exciting as planning a birthday or a family get-together; it’s a more difficult thing to do. Although it can be dreadful to plan out your funeral, it allows you to plan out the funeral the way you want it to be.
For example, you get to plan what songs you want, which passages you which to have read, and what flowers you want. You also have the option to plan where you want to be buried and who should be in charge of your affairs. Planning your funeral and having the proper insurance to take care of your burial plans helps your family meet your final wishes.
Disadvantages of Burial Insurance
Although burial insurance has many incredible benefits, there are a few disadvantages you may want to review before you make your final decision. One of the biggest cons of this type of policy is the fact that it has a lower benefit than most other life insurance plans.
This is mainly because this policy is intended to cover funeral and burial expenses. If you want to have more coverage, there are other life insurance policies you can look into with your agent to ensure you have enough coverage you need. If you want just burial and funeral expenses covered, this policy is excellent for you.
No Health Discounts
Generally, there are no health discounts if you are someone in good health. The application questions are pretty straightforward, and there are no questions on the application that may qualify you for discounts. Make sure to check in with your insurer to see if there are any discounts that they offer.
Minimal Funds After the Funeral
Because these policy limits are smaller than most life insurance policies, there isn’t much money left after paying funeral expenses. Yes, there is a cash value part of the policy that you can use while you are alive, but after your loved ones use the policy to pay for your funeral and other expenses, there may not be much left for them after the fact.
Best Burial Insurance Company
There are several different insurance companies that you can reach out to for a quote on burial insurance. When choosing your insurance company, make sure to read their reviews and terms and conditions before committing to a company.
Mutual of Omaha Burial Insurance
Mutual of Omaha burial insurance is a highly rated company. When ranked against the other top life insurance companies, mutual of Omaha ranks the best with an A+ rating.
Their coverage amounts range from $2,000 to $40,000, and you can apply if you are in your 40s. The application approval time varies between 10 minutes to three business days, depending on the type of coverage you elect for and the information listed on the application. If you are a smoker looking for burial insurance or someone with pre-existing health concerns, you may still qualify for burial insurance.
How to Apply for Burial Insurance
Once you choose your insurance company, you can submit a quote online or call them at their assigned number. Most insurance companies prefer to meet you face to face before they issue the policy, but other companies can issue it over the phone or online. The application takes between 10 to 30 minutes to complete, and you will need to answer questions about your health, age, and weight.
Other questions on the application:
- Family history
- Previous existing conditions
- Current health concerns
- Level of activity
- Blood type
There are a few companies that may request a urine or blood test. As mentioned earlier, you may not need a medical exam, but again, this depends on your insurer and their requirements.
Other Pre-qualifying Questions
As mentioned above, when you fill out your application, you will need to answer questions about your health. Most applications request information from the last two years of your health.
Common health questions:
- Are you currently bedridden?
- Are you currently in a care facility?
- Do you have cancer?
- Are you taking medication?
- Do you have dementia?
- Do you have cancer?
- Have you tested positive for HIV?
- Have you tested positive for AIDs?
These questions listed are not all-inclusive. There may be other questions such as, “do you smoke tobacco?”. Even if you answered “yes” to any of these listed questions, you might still qualify for a burial insurance policy.
Burial Insurance Tips
It is best to plan ahead by taking the time to understand the costs of a funeral in your area. You may also want to consider the cost of cremation and other funerary-related expenses. If you plan on staying in the area you are in for some time; it helps to reach out to nearby funeral directors to receive a quote for funeral costs.
Also, ensure that the person you plan to list as the head of your estate has copies of your important documents. As mentioned earlier, you will also want to think about your final wishes.
This includes the songs you want played at your funeral and the types of flowers you want presented. Planning out your funeral helps your family fulfill your final wishes without needing to stress over what you may have wanted.
Be Open and Honest
The last thing you want to do is put that extra burden on your family when they discover that your policy came back null and void. Make sure that you answer the questions honestly when you fill out your burial insurance application. You may be able to skate by each year that passes, but when it comes time to pay out of the policy, your claim may be denied.
All insurance companies have a contestability period where they look into all your medical records to ensure it matches the information input on your application. If there are any discrepancies, your family may not receive the death benefit.
Review Your Coverages
Funeral costs change all the time, and they vary based on the area you live in. There is also the chance that your health may decline as you get older.
Life insurance policies, just like your auto insurance or any other essential insurance policies, are not one-time purchases. It is best to review your coverages every once to ensure that you have the appropriate coverages. This will ensure that your family has enough to take care of your after-life expenses when you pass away.
Prepay for Your Funeral
If you would like to, you have the opportunity to pay for your funeral in advance. It is crucial that you check how the funeral home stores your money before you sign anything. Depending on the type of funeral and the funeral home’s rules, you may be able to lock in a particular rate for your funeral services.
As with any arrangements, ensure that you have your funeral arrangements documented. It is best that you keep a copy of this document and that your future head of your estate also has a copy.
Make sure that you consider all of your options before committing to a repayment schedule. You may one day change your funeral plans or move away from that funeral home’s area. If you create this plan, and then you move away or change your final wishes, you will lose the money paid to the funeral home.
Purchase Burial Insurance Today
Preparing yourself and your family for your future burial plans does not need to be a stressful time. Instead, this time should be well a time to celebrate the life and legacy you leave behind.
To ensure that your family has the proper coverage they need to fulfill your last wishes, it is best to work with Mutual of Omaha Burial Insurance. With their high rating and low affordable rates, you are guaranteed to put your family at ease when it comes time to plan your funeral. Contact us now for a free, no-obligation quote today!